LIONSGATE REPORTS RESULTS FOR SECOND QUARTER 2015

LIONSGATE REPORTS RESULTS FOR SECOND QUARTER 2015

Revenue Increases 11% to $552.9 Million

Basic Net Income per Share is $0.15 Compared to $0.00 in Prior Year Quarter

Television Production Revenue Grows 141% in the Quarter

SANTA MONICA, Calif. and VANCOUVER, British Columbia, Nov. 6, 2014 /PRNewswire/ -- Lionsgate (NYSE: LGF), a premier next generation global content leader, today reported revenue of $552.9 million, adjusted EBITDA of $59.0 million, adjusted net income of $33.0 million or $0.24 adjusted basic net income per share and net income of $20.8 million or $0.15 basic net income per share for the second quarter of fiscal 2015 (quarter ended September 30, 2014).

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"We're pleased that our entire portfolio of businesses contributed to our solid results in the quarter, driven by a particularly strong performance from our television operations," said Lionsgate Chief Executive Officer Jon Feltheimer. "It was a quarter in which we extended our franchises into new lines of business, continued to assemble a strong pipeline of new properties with great commercial potential and developed online platforms that will enhance our ability to deliver our content directly to the consumer."

Revenue of $552.9 million for the quarter increased 11% from $498.7 million in the prior year quarter, driven by strong gains in television production as well as increases in motion picture revenue from pay and free television windows which more than offset declines in theatrical and home entertainment revenue in the quarter. Lionsgate UK also recorded a 38% revenue increase in the quarter.

Adjusted EBITDA of $59.0 million for the quarter increased 4% from adjusted EBITDA of $56.5 million in the prior year quarter. Adjusted EBITDA excluded $17.3 million in stock-based compensation, a $1.4 million restructuring charge associated with costs of the Company's relocation of its international sales operations to London, England and a $0.6 million loss related to conversion of subordinated debentures in the quarter.

Adjusted net income of $33.0 million or $0.24 adjusted basic net income per share for the quarter increased 30% from adjusted net income of $25.4 million or $0.19 adjusted basic net income per share in the prior year quarter. Adjusted net income for the quarter benefitted from decreased interest expense and a lower effective tax rate compared to the prior year quarter.

Net income of $20.8 million or $0.15 basic net income per share on 137.4 million weighted average number of common shares outstanding increased from $0.5 million or $0.00 basic net income per share on 137.1 million weighted average number of common shares outstanding in the prior year quarter. The prior year quarter included a $36.2 million loss on extinguishment of debt.

During the quarter, the Company increased its quarterly dividend from $0.05 to $0.07 per common share payable on November 7, 2014 to shareholders of record as of September 30, 2014.

Lionsgate's filmed entertainment backlog, or already contracted future revenue not yet recorded, was $1.3 billion at September 30, 2014 compared to $1.2 billion at March 31, 2014.

Overall Motion Picture segment revenue for the quarter was $398.0 million compared to $434.4 million in the prior year quarter. Within the Motion Picture segment, theatrical revenue declined to $44.9 million with only two wide theatrical releases in the quarter, The Expendables 3 and Step Up All In, compared to a prior year quarter that included two wide releases, continuing revenue from the May 2013 release of Now You See Me and the record-setting Spanish-language release Instructions Not Included from Pantelion Films.

Lionsgate's home entertainment revenue for the quarter was $164.4 million compared to $209.9 million in the prior year quarter due to strong performances from Managed Brands and Now You SeeMe in the prior year quarter partially offset by the outstanding home entertainment performance of Divergent in the current quarter. Home entertainment revenue from television production increased in the quarter due to gains in digital media revenue.

Bolstered by the pay television window opening for The Hunger Games: Catching Fire and the free television window opening for The Twilight Saga: Breaking Dawn - Part 1, television revenue included in the Motion Picture segment more than doubled to $69.4 million in the quarter compared to $34.6 million in the prior year quarter. The next installment of the global blockbuster Hunger Games franchise, The Hunger Games: Mockingjay Part 1, will open on nearly 10,000 screens in North America in two weeks on November 21.

International Motion Picture segment revenue (excluding Lionsgate U.K.) for the quarter was $75.6 million compared to $88.7 million in the prior year quarter with three wide release titles in worldwide release compared to five in the prior year quarter.

As noted earlier, Lionsgate U.K. revenue of $37.3 million in the quarter increased 38% compared to the prior year quarter.

Revenue for the Television Production segment rose to $154.9 million in the quarter, an increase of more than 140% compared to $64.3 million in the prior year quarter, with strong gains in both domestic and international television as well as home entertainment revenue from television production.

Fifty-five episodes and 38.5 hours of domestic television series were delivered in the quarter, including episodes of Manhattan, Anger Management, Orange is the New Black, Houdini, Nashville and Mad Men, compared to 20 episodes and 11.0 hours in the prior year quarter. Strong international sales of Orange is the NewBlack, Nashville and Anger Management were also reported in the quarter.

Lionsgate senior management will hold its analyst and investor conference call to discuss its fiscal 2015 second quarter financial results at 9:00 A.M. ET/6:00 A.M. PT on Friday, November 7, 2014. Interested parties may participate live in the conference call by calling 1-800-230-1092 (612-332-0107 outside the U.S. and Canada). A full digital replay will be available from Friday morning, November 7, through Friday, November 14, by dialing 1-800-475-6701 (320-365-3844 outside the U.S. and Canada) and using access code 339764.

ABOUT LIONSGATE

Lionsgate, home to The Hunger Games, Twilight and Divergent franchises, is a premier next generation global content leader with a strong and diversified presence in motion picture production and distribution, television programming and syndication, home entertainment, digital distribution, new channel platforms and international distribution and sales. Lionsgate currently has more than 30 television shows on over 20 different networks spanning its primetime production, distribution and syndication businesses, including such critically-acclaimed hits as the multiple Emmy Award-winning Mad Men and Nurse Jackie, the comedy Anger Management, the broadcast network series Nashville, the syndication success The Wendy Williams Show and the critically-acclaimed hit series Orange is the New Black.

Its feature film business has been fueled by such recent successes as the blockbuster first two installments of The Hunger Games franchise, The Hunger Games and The Hunger Games: Catching Fire, the first installment of the Divergent franchise, Now You See Me, John Wick, Warm Bodies, The Possession, Sinister, Roadside Attractions' A Most Wanted Man, Lionsgate/Codeblack Films' Addicted and Pantelion Films' Instructions Not Included, the highest-grossing Spanish-language film ever released in the U.S.

Lionsgate's home entertainment business is an industry leader in box office-to-DVD and box office-to-VOD revenue conversion rates. Lionsgate handles a prestigious and prolific library of approximately 16,000 motion picture and television titles that is an important source of recurring revenue and serves as the foundation for the growth of the Company's core businesses. The Lionsgate and Summit brands remain synonymous with original, daring, quality entertainment in markets around the world. www.lionsgate.com

***

For further information, please contact:
Peter D. Wilkes
310-255-3726
pwilkes@lionsgate.com

The matters discussed in this press release include forward-looking statements, including those regarding the performance of future fiscal years. Such statements are subject to a number of risks and uncertainties. Actual results in the future could differ materially and adversely from those described in the forward-looking statements as a result of various important factors, including the substantial investment of capital required to produce and market films and television series, increased costs for producing and marketing feature films and television series, budget overruns, limitations imposed by our credit facility and notes, unpredictability of the commercial success of our motion pictures and television programming, the cost of defending our intellectual property, difficulties in integrating acquired businesses, risks related to our acquisition strategy and integration of acquired businesses, the effects of disposition of businesses or assets, technological changes and other trends affecting the entertainment industry, and the risk factors as set forth in Lionsgate's Annual Report on Form 10-K, filed with the Securities and Exchange Commission (the "SEC") on May 29, 2014, as amended in Lionsgate's Quarterly Report on Form 10-Q filed with the SEC on November 6, 2014, which risk factors are incorporated herein by reference. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect any future events or circumstances.








LIONS GATE ENTERTAINMENT CORP.


UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS


September 30, March 31,
2014 2014
---- ----

(Amounts in thousands,

except share amounts)

ASSETS

Cash and cash equivalents $26,269 $25,692

Restricted cash 7,535 8,925

Accounts receivable, net of
reserves for returns and
allowances of $60,132
(March 31, 2014 -
$106,680) and provision
for doubtful accounts of
$2,748 (March 31, 2014 -
$4,876) 800,756 885,571

Investment in films and
television programs, net 1,553,042 1,274,573

Property and equipment, net 16,965 14,552

Equity method investments 198,680 181,941

Goodwill 323,328 323,328

Other assets 70,610 71,067

Deferred tax assets 56,405 65,983
------ ------

Total assets $3,053,590 $2,851,632
========== ==========

LIABILITIES

Senior revolving credit
facility $139,500 $97,619

5.25% Senior Notes 225,000 225,000

Term Loan 222,932 222,753

Accounts payable and
accrued liabilities 242,097 332,457

Participations and
residuals 491,892 469,390

Film obligations and
production loans 781,124 499,787

Convertible senior
subordinated notes 124,279 131,788

Deferred revenue 272,604 288,300
------- -------

Total liabilities 2,499,428 2,267,094
--------- ---------

Commitments and contingencies

SHAREHOLDERS' EQUITY

Common shares, no par
value, 500,000,000 shares
authorized, 138,626,480
shares issued (March 31,
2014 -141,007,461 shares) 650,747 743,788

Accumulated deficit (93,833) (157,875)

Accumulated other
comprehensive loss (2,752) (1,375)
------ ------

Total shareholders' equity 554,162 584,538
------- -------

Total liabilities and
shareholders' equity $3,053,590 $2,851,632
========== ==========







LIONS GATE ENTERTAINMENT CORP.


UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME


Three Months Ended Six Months Ended

September 30, September 30,
------------- -------------

2014 2013 2014 2013
---- ---- ---- ----

(Amounts in thousands, except per share amounts)

Revenues $552,876 $498,729 $1,002,259 $1,068,457

Expenses:

Direct operating 306,391 261,798 545,264 568,243

Distribution and marketing 152,877 145,502 250,198 316,962

General and administration 61,489 63,773 125,568 120,543

Depreciation and amortization 1,631 1,611 2,977 3,236

Total expenses 522,388 472,684 924,007 1,008,984

Operating income 30,488 26,045 78,252 59,473
------ ------ ------ ------

Other expenses (income):

Interest expense

Cash interest 9,537 11,925 18,979 28,198

Amortization of debt discount and
deferred financing costs 3,534 4,247 7,064 8,788
----- ----- ----- -----

Total interest expense 13,071 16,172 26,043 36,986

Interest and other income (547) (1,483) (1,565) (2,979)

Loss on extinguishment of debt 586 36,187 586 36,653
--- ------ --- ------

Total other expenses, net 13,110 50,876 25,064 70,660
------ ------ ------ ------

Income (loss) before equity interests
and income taxes 17,378 (24,831) 53,188 (11,187)

Equity interests income 8,245 6,502 26,455 14,479
----- ----- ------ ------

Income (loss) before income taxes 25,623 (18,329) 79,643 3,292

Income tax provision (benefit) 4,842 (18,834) 15,601 (10,830)
----- ------- ------ -------

Net income $20,781 $505 $64,042 $14,122
======= ==== ======= =======


Basic net income per common share $0.15 $0.00 $0.46 $0.10
===== ===== ===== =====

Diluted net income per common share $0.15 $0.00 $0.44 $0.10
===== ===== ===== =====


Weighted average number of common shares outstanding:

Basic 137,380 137,147 137,942 136,671

Diluted 146,667 140,681 151,788 139,870


Dividends declared per common share $0.07 $ - $0.12 $ -





LIONS GATE ENTERTAINMENT CORP.


UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


Three Months Ended Six Months Ended

September 30, September 30,
------------- -------------

2014 2013 2014 2013
---- ---- ---- ----

(Amounts in thousands)

Operating Activities:

Net income $20,781 $505 $64,042 $14,122

Adjustments to reconcile net income to net
cash provided by (used in) operating
activities:

Depreciation and amortization 1,631 1,611 2,977 3,236

Amortization of films and
television programs 200,284 157,136 359,092 376,500

Amortization of debt discount
and deferred financing costs 3,534 4,247 7,064 8,788

Non-cash share-based
compensation 17,012 14,962 33,549 28,182

Distribution from equity
method investee 1,558 - 7,788 9,849

Loss on extinguishment of debt 586 36,187 586 36,653

Equity interests income (8,245) (6,502) (26,455) (14,479)

Deferred income taxes 4,211 (12,044) 9,316 (9,981)

Changes in operating assets and
liabilities:

Restricted cash (1) 892 1,390 2,554

Accounts receivable, net (85,920) 127,796 83,594 95,280

Investment in films and
television programs (375,168) (177,363) (639,019) (338,296)

Other assets (1,278) (7,975) (896) (9,197)

Accounts payable and accrued
liabilities 16,676 (43,909) (78,990) (77,493)

Participations and residuals 24,109 20,870 22,570 3,358

Film obligations (4,324) (12,032) (38,913) (33,402)

Deferred revenue (10,749) 35,479 (15,632) 14,897


Net Cash Flows Provided By
(Used In) Operating
Activities (195,303) 139,860 (207,937) 110,571
-------- ------- -------- -------

Investing Activities:

Proceeds from the sale of
equity method investees - - 14,575 9,000

Investment in equity method
investees (3,000) - (12,650) (3,750)

Distributions from equity
method investee in excess of
earnings - - - 4,169

Other investments (2,000) - (2,000) -

Repayment of loans receivable - 3,000 - 3,000

Purchases of property and
equipment (3,068) (1,967) (4,495) (3,395)


Net Cash Flows Provided By
(Used In) Investing
Activities (8,068) 1,033 (4,570) 9,024
------ ----- ------ -----

Financing Activities:

Senior revolving credit
facility -borrowings 197,500 255,100 367,500 428,100

Senior revolving credit
facility -repayments (142,000) (309,100) (325,619) (481,100)

5.25% Senior Notes and Term
Loan -borrowings, net of
deferred financing costs of
$4,694 in 2013 - 442,806 - 442,806

10.25% Senior Notes -
repurchases and redemptions - (466,304) - (470,584)

Convertible senior
subordinated notes -
borrowings - - - 60,000

Convertible senior
subordinated notes -
repurchases - - (16) -

Production loans - borrowings 177,753 60,822 385,706 169,427

Production loans - repayments (28,576) (113,806) (65,435) (196,098)

Pennsylvania Regional Center
credit facility -repayments - - - (65,000)

Repurchase of common shares (16,875) - (126,404) -

Dividends paid (6,880) - (13,946) -

Excess tax benefits on equity-
based compensation awards (1,621) - 1,150 -

Exercise of stock options 1,257 8,577 1,663 9,120

Tax withholding required on
equity awards (1,889) (2,238) (12,136) (11,257)

Net Cash Flows Provided By
(Used In) Financing
Activities 178,669 (124,143) 212,463 (114,586)
------- -------- ------- --------

Net Change In Cash And Cash
Equivalents (24,702) 16,750 (44) 5,009

Foreign Exchange Effects on
Cash 599 (557) 621 (160)

Cash and Cash Equivalents -
Beginning Of Period 50,372 51,019 25,692 62,363


Cash and Cash Equivalents -
End Of Period $26,269 $67,212 $26,269 $67,212
======= ======= ======= =======





LIONS GATE ENTERTAINMENT CORP.


RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED EBITDA


Three Months Ended Six Months Ended

September 30, September 30,
------------- -------------

2014 2013 2014 2013
---- ---- ---- ----

(Amounts in thousands)

Net income $20,781 $505 $64,042 $14,122

Depreciation and
amortization 1,631 1,611 2,977 3,236

Cash interest 9,537 11,925 18,979 28,198

Noncash interest expense 3,534 4,247 7,064 8,788

Interest and other income (547) (1,483) (1,565) (2,979)

Income tax provision
(benefit) 4,842 (18,834) 15,601 (10,830)
----- ------- ------ -------

EBITDA $39,778 $(2,029) $107,098 $40,535
======= ======= ======== =======


Stock-based compensation
(1) 17,322 22,388 33,743 40,135

Restructuring charges 1,354 - 6,242 -

Gain on sale of equity
method investment - - (11,355) -

Loss on extinguishment of
debt 586 36,187 586 36,653

Adjusted EBITDA $59,040 $56,546 $136,314 $117,323
======= ======= ======== ========


(1) The three months ended September 30, 2014 and 2013 include cash settled SARs expense of $0.3 million and $7.4 million, respectively. The six months ended September 30, 2014 and 2013 include cash settled SARs expense of
$1.4 million and $11.2 million respectively.


EBITDA is defined as earnings before interest, income tax provision or benefit, and depreciation and amortization. EBITDA is a non-GAAP financial measure.

Adjusted EBITDA represents EBITDA as defined above adjusted for stock-based compensation, restructuring charges, gain on sale of equity method investment, and loss on extinguishment of debt. Stock-based compensation represents compensation expenses associated with stock options, restricted share units and cash and equity settled stock appreciation rights ("SARs"). Restructuring charges primarily consist of severance costs associated with the integration of the marketing operations of our Lionsgate and Summit film labels and costs related to the move of our international sales and distribution organization to the United Kingdom. Gain on sale of equity method investment represents the gain on sale of our interest in FEARnet. Adjusted EBITDA is a non-GAAP financial measure.

Management believes EBITDA and Adjusted EBITDA to be meaningful indicators of our performance that provide useful information to investors regarding our financial condition and results of operations. Presentation of EBITDA and Adjusted EBITDA are non-GAAP financial measures commonly used in the entertainment industry and by financial analysts and others who follow the industry to measure operating performance. While management considers EBITDA and Adjusted EBITDA to be important measures of comparative operating performance, they should be considered in addition to, but not as a substitute for, net income and other measures of financial performance reported in accordance with Generally Accepted Accounting Principles ("GAAP"). EBITDA and Adjusted EBITDA do not reflect cash available to fund cash requirements. Not all companies calculate EBITDA or Adjusted EBITDA in the same manner and the measures as presented may not be comparable to similarly-titled measures presented by other companies.






LIONS GATE ENTERTAINMENT CORP.


RECONCILIATION OF FREE CASH FLOW TO NET CASH

FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES


Three Months Ended Six Months Ended

September 30, September 30,
------------- -------------

2014 2013 2014 2013
---- ---- ---- ----

(Amounts in thousands)

Net Cash Flows Provided
By (Used In) Operating
Activities $(195,303) $139,860 $(207,937) $110,571

Purchases of property
and equipment (3,068) (1,967) (4,495) (3,395)

Net borrowings under and
(repayment) of
production loans 149,177 (52,984) 320,271 (26,671)

Excess tax benefits on
equity-based
compensation awards (1,621) - 1,150 -
------ --- ----- ---

Free Cash Flow, as
defined $(50,815) $84,909 $108,989 $80,505
======== ======= ======== =======



Free cash flow is defined as net cash flows provided by (used in) operating activities, less purchases of property and equipment, plus or minus the net increase or decrease in production loans, plus or minus excess tax benefits on equity-based compensation awards. The adjustment for the production loans is made because the GAAP based cash flows from operations reflects a non-cash reduction of cash flows for the cost of films associated with production loans prior to the time the Company actually pays for the film. The Company believes that it is more meaningful to reflect the impact of the payment for these films in its free cash flow when the payments are actually made.

Free cash flow is a non-GAAP financial measure as defined in Regulation G promulgated by the Securities and Exchange Commission. This non-GAAP financial measure is in addition to, not a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.

Management believes this non-GAAP measure provides useful information to investors regarding cash that our operating businesses generate whether classified as operating or financing activity (related to the production of our films) within our GAAP based statement of cash flows, before taking into account cash movements that are non-operational. Free cash flow is a non-GAAP financial measure commonly used in the entertainment industry and by financial analysts and others who follow the industry. Not all companies calculate free cash flow in the same manner and the measure as presented may not be comparable to similarly titled measures presented by other companies.






LIONS GATE ENTERTAINMENT CORP.


RECONCILIATION OF EBITDA TO FREE CASH FLOW


Three Months Ended Six Months Ended

September 30, September 30,
------------- -------------

2014 2013 2014 2013
---- ---- ---- ----

(Amounts in thousands)

EBITDA $39,778 $(2,029) $107,098 $40,535


Plus: Amortization of film and television programs 200,284 157,136 359,092 376,500

Less: Cash paid for film and television programs (1) (230,315) (242,379) (357,661) (398,369)
-------- -------- -------- --------

Cash paid for film and television programs in excess
of amortization (30,031) (85,243) 1,431 (21,869)


Plus: Non-cash stock-based compensation 17,012 14,962 33,549 28,182

Plus: Distributions from equity method investee 1,558 - 7,788 9,849

Less: Equity interests income (8,245) (6,502) (26,455) (14,479)

Plus: Loss on extinguishment of debt 586 36,187 586 36,653
--- ------ --- ------

EBITDA adjusted for items above 20,658 (42,625) 123,997 78,871


Changes in other operating assets and liabilities:

Restricted cash (1) 892 1,390 2,554

Accounts receivable, net (85,920) 127,796 83,594 95,280

Other assets (1,278) (7,975) (896) (9,197)

Accounts payable and accrued liabilities 16,676 (43,909) (78,990) (77,493)

Participations and residuals 24,109 20,870 22,570 3,358

Deferred revenue (10,749) 35,479 (15,632) 14,897
------- ------ ------- ------

(57,163) 133,153 12,036 29,399


Purchases of property and equipment (3,068) (1,967) (4,495) (3,395)

Interest, taxes and other (2) (11,242) (3,652) (22,549) (24,370)


Free Cash Flow, as defined $(50,815) $84,909 $108,989 $80,505
======== ======= ======== =======

_________________________

(1) Cash paid for film and television programs is calculated using the following amounts as presented in our consolidated statement of cash flows:

Change in investment in film and television programs $(375,168) $(177,363) $(639,019) $(338,296)

Change in film obligations (4,324) (12,032) (38,913) (33,402)

Production loans - borrowings 177,753 60,822 385,706 169,427

Production loans - repayments (28,576) (113,806) (65,435) (196,098)
------- -------- ------- --------

Total cash paid for film and television programs $(230,315) $(242,379) $(357,661) $(398,369)
========= ========= ========= =========

_________________________

(2) Interest, taxes and other consists of the following:

Cash interest $(9,537) $(11,925) $(18,979) $(28,198)

Interest and other income 547 1,483 1,565 2,979

Current income tax (provision) benefit (631) 6,790 (6,285) 849

Excess tax benefits on equity-based compensation
awards (1,621) - 1,150 -

Total interest, taxes and other $(11,242) $(3,652) $(22,549) $(24,370)
======== ======= ======== ========

This reconciliation is provided to illustrate the difference between our EBITDA and free cash flow which are both separately reconciled to their corresponding GAAP metrics.








LIONS GATE ENTERTAINMENT CORP.


RECONCILIATION OF INCOME (LOSS) BEFORE INCOME TAXES, NET

INCOME, AND BASIC AND DILUTED EPS TO ADJUSTED INCOME BEFORE

INCOME TAXES, ADJUSTED NET INCOME, AND ADJUSTED BASIC AND DILUTED EPS


Three Months Ended September 30, 2014
-------------------------------------

(Amounts in thousands, except per share amounts)

Income before
income taxes Net income Basic EPS* Diluted EPS*
-------------- ---------- --------- -----------

As reported $25,623 $20,781 $0.15 $0.15

Stock-based compensation (1) 17,322 10,972 0.08 0.07

Restructuring charges (2) 1,354 858 0.01 0.01

Loss on extinguishment of debt (3) 586 371 - -
--- --- --- ---

As adjusted for stock-based compensation,
restructuring charges and loss on extinguishment of
debt $44,885 $32,982 $0.24 $0.23
======= ======= ===== =====


Three Months Ended September 30, 2013
-------------------------------------

(Amounts in thousands, except per share amounts)

Income (loss)
before income
taxes Net income Basic EPS* Diluted EPS*
-------------- ---------- --------- -----------

As reported $(18,329) $505 $0.00 $0.00

Stock-based compensation (1) 22,388 14,104 0.10 0.10

Loss on extinguishment of debt (3) 36,187 22,798 0.17 0.16

Tax valuation allowance (4) - (12,030) (0.09) (0.08)
--- ------- ----- -----

As adjusted for stock-based compensation, loss on
extinguishment of debt and valuation allowance $40,246 $25,377 $0.19 $0.18
======= ======= ===== =====


Six Months Ended September 30, 2014
-----------------------------------

(Amounts in thousands, except per share amounts)

Income before
income taxes Net income Basic EPS* Diluted EPS*
-------------- ---------- --------- -----------

As reported $79,643 $64,042 $0.46 $0.44

Stock-based compensation (1) 33,743 21,373 0.15 0.14

Restructuring charges (2) 6,242 3,954 0.03 0.03

Gain on sale of equity method investment (5) (11,355) (7,192) (0.05) (0.05)

Loss on extinguishment of debt (3) 586 371 - -

As adjusted for stock-based compensation,
restructuring charges, gain on sale of equity method
investment, and loss on extinguishment of debt $108,859 $82,548 $0.60 $0.57
======== ======= ===== =====


Six Months Ended September 30, 2013
-----------------------------------

(Amounts in thousands, except per share amounts)

Income before
income taxes Net income Basic EPS* Diluted EPS*
-------------- ---------- --------- -----------

As reported $3,292 $14,122 $0.10 $0.10

Stock-based compensation (1) 40,135 25,285 0.19 0.17

Loss on extinguishment of debt (3) 36,653 23,091 0.17 0.16

Tax valuation allowance (4) - (12,030) (0.09) (0.08)
--- ------- ----- -----

As adjusted for stock-based compensation, loss on
extinguishment of debt and valuation allowance $80,080 $50,468 $0.37 $0.36
======= ======= ===== =====

_________________________

* Basic and Diluted EPS amounts may not add precisely due to rounding


Adjusted income before income taxes, adjusted net income and adjusted basic and diluted EPS are adjusted for the following items:

(1) Stock-based compensation: Adjustments for stock-based compensation represents compensation expenses associated with stock options, restricted share units, cash and equity settled SARs. The adjustment to net income is net of the tax impact calculated using the statutory tax rate applicable to each adjustment.(2) Restructuring charges: This adjusts income before income taxes and net income to eliminate the severance costs associated with the integration of the marketing operations of our Lionsgate and Summit film labels and costs related to the move of our international sales and distribution organization to the United Kingdom. The adjustment to net income is net of the tax impact calculated using the statutory tax rate applicable to each adjustment.(3) Loss on extinguishment of debt: This adjusts income (loss) before income taxes and net income to eliminate the loss on extinguishment of debt. The adjustment to net income is net of the tax impact calculated using the statutory tax rate applicable to each adjustment.(4) Tax valuation allowance: This adjusts net income to eliminate the discrete tax benefit recognized for financial reporting purposes upon the reduction of the Company's valuation allowance on its net deferred tax assets in our Canadian tax jurisdiction that are expected to be realized in future tax returns.(5) Gain on sale of equity method investment: This adjusts income before income taxes and net income to eliminate the gain on sale of our interest in FEARnet. The adjustment to net income is net of the tax impact calculated using the statutory tax rate applicable to each adjustment.Management believes that these non-GAAP measures provide useful information to investors regarding the Company's results as compared to historical periods. The Company uses these measures, among other measures, to evaluate the operating performance of the Company. The Company believes that the adjusted results provide relevant and useful information for investors because they clarify the Company's actual operating performance and allow investors to review our operating performance in the same way as our management. Since these measures are not calculated in accordance with generally accepted accounting principles, they should not be considered in isolation of, or as a substitute for income before income taxes, net income, basic and diluted EPS. Not all companies calculate adjusted income before income taxes, adjusted net income, and adjusted basic and diluted EPS in the same manner and the measures as presented may not be comparable to similarly titled measures presented by other companies.

Logo - http://photos.prnewswire.com/prnh/20130919/LA83194LOGO

SOURCE Lionsgate

Photo:http://photos.prnewswire.com/prnh/20130919/LA83194LOGO
http://photoarchive.ap.org/
Lionsgate

Web Site: http://www.lionsgate.com


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